The Delhi High Court on Monday dismissed a plea challenging the LIC move to acquire 51 per cent stake in the government-owned IDBI Bank.
Justice Vibhu Bakhru dismissed the All India IDBI Officers Association plea challenging LIC purchasing the stake in the IDBI on the ground that change in shareholding could take away the public sector bank status.
The association had moved the court pleading that IDBI's loss of status as a "public sector bank" would adversely affect the employment conditions of its employees, especially the ones belonging to SC/ST and OBC categories.
The plea had also challenged the Centre's move to disinvest its stake in the public sector bank.
The Cabinet on August 1 approved the purchase of a controlling 51 per cent stake in the IDBI by the state-run LIC which would result in the government becoming a minority shareholder.
The nod was a bid to turnaround the loss making government-owned IDBI Bank struggling with accumulated bad loans.
IDBI's gross non-performing assets (NPAs), or bad loans, amounted to a staggering Rs 55,600 crore at the end of the fourth quarter ended March.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)